Rethinking On China's Floating Charge System

Floating charge is a guarantee system originated by England Law of Equity in 1950's late. Due to the floating charge has a special advantage in financing and effectiveness of property, the system been soon widely used in most common law countries, and used in non-common law of the Netherlands, Norway, Russia, Japan and other countries as well. However as most legal systems disadvantages, floating charge nor is perfect, and floating charge can effectively protect the mortgagee creditor is the main focus of the dispute. The floating charge system was introduced in the controversial and recriminations on the property law of PRC. Although the law on the floating charge only has three terms, but is not to say the system is simple. While market competition is increasing, the enterprise capital needs is also increasing. In the United States, enterprise is the most important financing body, using its entire property as collateral to guarantee the debt. In the year 2008 outbreak of the subprime mortgage crisis affecting the world's most famous large enterprises have go bankrupt. As a result, how to study and research the floating charge system, further improving this aspect of the legislation to take its essence, and avoid like 2008 years as the financial crisis, is an urgent need to resolve the problem. This is also one reason of the students choose this topic.